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Bulldog Communications – one of a handful of companies actively involved in local loop unbundling – has warned that BT’s decision to slash the cost of wholesale DSL could snuff out competition.

Bulldog warned that unless there were "equally aggressive cuts in wholesale costs for LLU operators like Bulldog, it is unlikely that there will be any wholesale DSL competition".

"The result would mean no choice, no differentiation in service offerings, and further monopolistic control of the broadband DSL market by BT. The best long term interests of 'Broadband Britain' will not be served if there is only one provider of DSL
broadband services," said Bulldog in a statement.

It’s already approached telecoms regulator, Oftel, for assurances that LLU costs will also fall so that it can offer an alternative to BT’s wholesale DSL service.

When quizzed on the issue a spokeswoman for telecoms regulator, Oftel, said: "If BT has found room to reduce [wholesale DSL] charges then LLU costs should also come down."

Elsewhere, Sheffield-based ISP PlusNet has said it plans to cut the price of its consumer DSL service to £25.99 (inc VAT) a month.

And Freeserve has confirmed it’s dropping its price to £29.99 a month from April 1. ®

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